September 15, 2012

Marc Faber: If I were Bernanke, I would resign

Central bankers are "coiner" and Federal Reserve Chairman Ben Bernanke, the U.S. should resign for having ruined the U.S. economy, said Marc Faber, publisher of the Gloom, Doom and Boom Report, said on CNBC.
In his words, Bernanke is one of the main supporters of the ultra-expansionary monetary policy, which is the cause of the recent financial crisis.
"If I screw up so bad as Bernanke, surely I would resign. The mandate of the Fed to support asset prices and thus creates wealth is coming - it does not work like that. This is a temporary increase, which is always followed by collapse, "says Faber.
"The only thing this achieves quantitative easing (QE), along with the continued operation Twist, is to redirect capital flows to the so-called Mayfair economy by raising asset prices," said Faber, whose popular name, as investors predict market collapse from 1987.
Mayfair economy describes a system that favors the wealthiest circles of society. Faber said that this round of quantitative easing will not help ordinary people.
"QE only helps the rich, whose assets rose. It does nothing for the people on the street to deal with the rising cost of living. This small part of the economy is booming while the rest becomes a victim of QE ", he said.
"Printers money are to blame for this crisis. If we continue with this expansionary monetary policy will find ourselves facing a "fiscal gap" and to "Grand Canyon fiscal," he added.
"If we in the western world economic crisis, it is because governments print up to 50% and more of money in the economy. It is a cancer that takes people's freedom, "he said.

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.